WASHINGTON (Reuters) - The Treasury Department has asked big banks receiving government bailout funds to provide more details about lending activity in a monthly report, a Treasury official said on Tuesday.
The Treasury wrote on January 16 to 20 banks getting funding under the Troubled Asset Relief Program asking for more information about business and consumer loans. The government also asked for data on mortgage-backed securities and asset-backed securities purchases.
Banks receiving the letter included Citigroup
"The purpose of this snapshot is to provide insight into the lending and financial intermediation activities of the largest recipients of the CPP (Capital Purchase Program)," the head of the TARP program, Neel Kashkari, wrote in a letter obtained by Reuters.
The Treasury is using up to $250 billion from the first half of a $700 billion rescue package to buy equity stakes in banks to strengthen them and restore lending to consumers and businesses.
Critics have charged that banks are not sufficiently taking advantage of the cash infusions to make loans. Kashkari said the information would help gauge the effectiveness of the program.
Citigroup and Bank of America said they planned to comply with all government reporting requirements.
The Treasury asked banks for data that covered October through December in their first submission. It is due by January 31.
(with additional reporting by Jonathan Stempel in New York)
(Reporting by Mark Felsenthal; Editing by Dan Grebler)
